USDA's Risk Management Agency has released a new calculation showing sorghum's crop insurance price elections at 97.8% of the value of corn up. That's up from only 88% previously.
That translates to a huge victory for the sorghum industry, says Gerald Simonsen, sorghum producer from Ruskin and president of the National Sorghum Producers.
"NSP has been working with RMA over the past eight years to improve price elections, and the new methodology demonstrated the organization's ability to deliver tangible results to its members," he says. For sorghum producers, this new value can mean between $20 through $50 per acre or more in increased insurance coverage for sorghum, depending on individual yields and coverage levels, according to Simonsen.
"This methodology is by far one of the best things that could have happened for sorghum producers this year, and this is going to greatly help sorghum producers manage their risk," he says.
Burl Scherler, member of the NSP Legislative Committee from Sheridan Lake, Colo., says, "Grain sorghum is an important crop to us, and having the insurance straightened out is another piece of the puzzle to try to make a profit in agriculture these days. This report relates better to the markets unlike in the past, and that will help producers to budget for their cash flows next year."
The methodology posted by RMA incorporates a period of 10 years to calculate the price elections.
This crop insurance price election will be in effect for the 2010 crop year.
To learn more about NSP, visit www.sorghumgrowers.com.